Visa-Mastercard Interchange Settlement: What US Merchants Need to Know

The Long Road to Resolution

For over two decades, U.S. merchants have been embroiled in complex antitrust litigation against Visa and Mastercard regarding interchange fees—the "swipe fees" businesses pay to accept card payments. This legal battle, which has seen multiple proposed settlements and judicial rejections, represents one of the most significant regulatory developments in the history of the payments industry.

Recent updates indicate that the court is actively overseeing the distribution of settlement funds. A court-appointed official is currently working through approximately 40,000 merchant claims issues, highlighting the administrative complexity involved in compensating millions of eligible businesses.

Understanding the Settlement Landscape

The litigation has been multifaceted, involving various classes of merchants and different time periods. A major settlement approved in 2019, valued at $5.5 billion, was designed to compensate businesses that accepted Visa or Mastercard during the 2004–2019 period.

More recently, a broader settlement aimed at resolving 21 years of litigation was approved by a federal judge in June 2026. This agreement is designed to provide systemic relief, including:

• Fee Reductions: A projected reduction in interchange fees by approximately $30 billion over the coming years.
• Rate Caps: A cap on standard consumer credit card interchange at 1.25% for at least eight years.
• Operational Flexibility: New rights for merchants to decline certain high-cost premium or commercial credit cards, moving away from the traditional "honor all cards" rule.
• Steering Rights: Enhanced ability for merchants to add surcharges or offer discounts to steer customers toward lower-cost payment methods.

What Merchants Should Do

Navigating these settlements requires diligence. Because the litigation involves multiple classes and timeframes, merchants should take the following steps:

1. Monitor Official Communications: Keep a close watch on court-mandated updates. The next quarterly status report is scheduled for October 9, 2026.
2. Verify Eligibility: If you operated a business between 2004 and 2019, ensure you have reviewed your records to see if you filed a claim for the earlier settlement funds.
3. Consult Legal or Financial Counsel: Given the complexity of the recent $30 billion settlement, consult with your payments processor or legal advisor to understand how the new fee caps and surcharge rules may impact your specific merchant category code (MCC) and processing volume.
4. Beware of Fraud: Be cautious of third-party websites or services claiming to facilitate your settlement payout. Only rely on information provided through official court-sanctioned channels.

ONKORE Perspective

At ONKORE, we view these settlements as a critical inflection point for merchant autonomy. While the financial payouts provide a degree of retroactive relief, the structural changes—specifically the ability to steer customers and decline high-cost cards—are the true long-term value drivers. Merchants must move beyond viewing interchange as a fixed cost of doing business and start leveraging these new regulatory rights to optimize their payment acceptance strategies. The shift toward a more transparent and flexible fee environment is a win for the merchant community, provided they have the operational insight to implement these changes effectively.

US merchants who accepted Visa or Mastercard between 2004 and 2019 may be eligible for settlement funds; the next status report is due in October 2026.

Affected industries: Retail, E-commerce, Hospitality, Food and Beverage

Review your historical processing data from 2004-2019.